Charles Hoskinson, founder of Cardano and CEO of Input Output Global (IOG), revealed in an interview that his company declined a potential partnership with El Salvador's government due to legal and geopolitical concerns. The deal collapsed over plans for a nationwide cryptocurrency airdrop that would have included members of the MS-13 gang, designated by the U.S. as a Transnational Criminal Organization and sanctioned by OFAC.
Hoskinson emphasized that distributing tokens to sanctioned individuals could violate U.S. federal law, stating: "If we give Bitcoin to all these people, we're facilitating value transfer to a terrorist organization." Discussions ended within a week when compliance clearance from the U.S. Justice Department proved unattainable. Additionally, Hoskinson criticized El Salvador's disorganized blockchain strategy, citing policy planning via WhatsApp and unrealistic proposals like volcanic-powered Bitcoin mining.
Despite Cardano's withdrawal, El Salvador adopted Bitcoin as legal tender in 2021 and currently holds 6,230 BTC (~$679 million). The revelation adds context to past criticisms from Bitcoin advocates like Max Keiser, who previously accused Hoskinson of being banned from the country—claims now countered by this compliance-focused explanation.